HAGUE, THE NETHERLANDS: Shell and Cosan have entered into an agreement to reinforce their 50:50 joint venture (JV), Raizen in Brazil, through a change in its contractual structure.
The partners have agreed to remove the mutual time-bound buyout options included in the original joint venture agreement, signed in June 2011, and in doing so have transformed Raizen from a temporary to a permanent joint venture.
Raizen is the world’s largest individual producer of sugar cane, producing more than four million tonnes of sugar, more than two billion litres of ethanol and 2.2-gigawatt hours of cogenerated energy in 2015. It also operates a network of more than 5,800 Shell-branded service stations in the country. The combination of Shell and Cosan’s retail experience and technical expertise have contributed to Raizen’s strong financial and operational performance since the venture was established.
“Low-carbon, sustainable biofuels play an important role today and will be required long term for heavy duty and long distance transport. We are pleased with Raizen’s strong performance. This commitment reaffirms the stability of Shell and Cosan’s partnership and our shared view of the long-term aims and value of the business,” said John Abbott, Shell’s downstream director.
“Altering Raizen into a permanent JV reinforces the corporation we built with Shell over the last five years while paving the way to continue our successful journey in Brazil. Our partnership with Shell is instrumental to being recognised for excellence in the development, production and marketing of sustainable energy,” added Marcos Lutz, CEO of Cosan.
Read More: Shell, Cosan reaffirms commitment to strengthen its biofuel JV
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